On Monday, Google and Salesforce announced a partnership that could have a profound impact on both companies. Salesforce is going to offer Google Apps inside its Salesforce.com CRM tool.
The Beta News article I linked to obviously sees this as a direct answer to Microsoft's recent foray into delivering its Microsoft Dynamics tool as a software as a service. (I wrote about this in my InsideCRM article, Is Titan Right for Your Small Business? Titan was the code name for Microsoft Dynamics.).
IDC agrees that this is a shot over Microsoft's bow. In a recent IDC commentary on the matter, Salesforce and Google Form Symbiotic Relationship (primary author, Caroline Dangson; requires registration), Dangson writes, "With Google on its team, salesforce.com poses a greater threat to Microsoft, which is a competitor to both companies."
Whatever, the motivation, it obviously benefits both companies in dramatic ways. For Google, it gives them a way to sell Google Apps to a larger user base already familiar with software as a service (SaaS). For Salesforce, it gives them the complete package enabling your sales team to conduct all its business inside Salesforce and create presentations, contracts and correspondence without ever leaving the interface.
In the above-mentioned IDC commentary, author Dangson sees lots of positives:
The synergy between Google Apps and salesforce.com is obvious — the partnership marries business workflow (salesforce.com) with productivity applications (Google Apps) and unified communications (Gtalk). Together, the partnership offers an appealing solution for small and medium-sized enterprises, particularly for their field teams. Salesforce.com for Google Apps also leverages the Force.com platform and Google's open APIs, opening up even more opportunities for customers and partners to build vertical or custom solutions.
It's hard not agree with that assessment. On its face, this looks like the beginning of a beautiful friendship.
The Microsoft MVP Summit is going on in Redmond this week. I can't imagine Microsoft is happy to have this announcement upstage its event or upset its carefully defined business plan. As I've written many times though, the Google-Microsoft dynamic is good for business ultimately because it forces each company to innovate and to act as a check on the other's power. While Google and Salesforce may well be seen as the winners, we as consumers also can breathe a sigh of relief that there is a force large enough to keep Microsoft's power in check. Advantage Google. Microsoft? Your move.